Hero Group to enter three wheeler segment

After splitting with Honda Motor Corporation, India’s largest two wheeler manufacturer Hero Group is planning to enter the three wheeler segment. Hero Group split with its long time partner Honda last month by purchasing 26% share in the company Hero Honda. However Hero Group has rights to manufacture and sell the existing vehicles under the brand Hero Honda till 2014.

After the split, it seam to be a herculean task for Hero Group to compete with its rivals and that too at a time when foreign players like Honda, Suzuki and Toyota are seriously gunning for India. In order to keep the profit margin at par, the company has decided to diversify its business and three wheeler segment is one of its option.

The other two big two wheeler manufacturers in India Bajaj Auto and TVS Motors are also doing business in three wheeler segment which helps to maintain their profit margins.